By Damilola Faustino
As you begin your startup journey, the thought of raising money can be very intimidating. If you are not ready to take a bank loan and crowdfunding doesn’t seem like a great option, it is a good idea to think about bootstrapping. Bootstrapping has its benefits. You are in full control and don’t depend on outside lenders while you make your first steps. However, bootstrapping your way to success may be a challenging journey, but if you follow these five tips you will get there in no time!
Mind your personal spending
Now that you have all your money put in the business, you need to mind your personal spending. Cut your personal expenses to the minimum even if that means that you have to give up on your eating at your favourite restaurant or even on living on your own. Entrepreneurship requires many sacrifices and the sacrifice of the posh life is one of them.
Cut down on business costs
After cutting your personal spending, you need to look for a way to cut business costs. It may seem so enticingly to rent an office space so you can create a productive work environment, but can you really afford that? The office space is not the main priority, so wait for the moment when you have paying customers. Try to cut as much as possible to cut cost.
Create a dedicated team
Hiring experts when you can’t offer them any reasonable payment is impossible. Instead of settling for forming any team, try to find professionals, who are ready to work for equity. That means that you need to sell them the idea and make them believe in the future of the company. Hire people, who complement each other’s skills and have knowledge in various areas.
Focus on acquiring customers
Without customers, you have no business. Keep your focus on acquiring customers before you even launch. Conduct market research and get to know the best practices of the strongest competitors. This information will help you get a better perspective on what your clients need and want so you can approach them with an offer they can’t resist.
Evaluate every expense carefully
When the money is rolling in, some expenses become an after-thought. If you let your guard down and start freely spending, it can cause a problem down the line if business slows or you face a challenge. Being financially responsible is key when things start flourishing is non-negotiable.
Create some publicity
Bootstrapping a startup is tough. You don’t have much time before the money finishes, so don’t waste it. Now is the time to spread the word about your product/service, so don’t use less time on marketing and PR. Don’t worry if you have no previous marketing or PR experience. It is easy today as you do not need to spend a dime for publicity.
Comments are visible after approval